The capital would be employed for the development of a new technology called NET Power, which emits high-pressured CO2 that is captured and could be used for enhanced oil recovery.
The company said there is zero loss of CO2 into the atmosphere and revenues generated from such CO2 sale improve cost effectiveness of the power generated by NET.
The Shaw Group President and CEO J.M. Bernhard Jr said, "In addition to being an emissions-free option for power generation investments created by large natural gas reserves in the United States, NET Power technology could aid in the recovery of 500b to 1 trillion barrels of oil worldwide."
The Shaw Group will hold exclusive rights to engineer, procure and construct NET Power plants.
US based power generator Exelon will provide and obtain permitting for a small-scale testing site, test and commission the facility.
It will also supply fuel and provide other operations and maintenance support and market its output and will also have options for the first full-scale commercial plants when development is complete.
NET Power, Shaw Group and Exelon are working with a global manufacturer to design, develop and manufacture a new turbine for this new technology.
Development of the first full-scale natural gas plant is expected to commence end of 2014 or early 2015.
